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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (68044)	6/15/2005 3:16:00 PM
From: Amy J	Respond to of 77400

I think so too. On a different note: investorshub.com Start-Up Wins Microsoft Wi-Fi Pact By SCOTT THURM Staff Reporter of THE WALL STREET JOURNAL June 13, 2005 Microsoft Corp. plans to replace the wireless data network on its corporate campuses with gear from a Silicon Valley start-up, signaling a shift in how companies use the technology known as Wi-Fi. The Redmond, Wash., software maker said it will install more than 5,000 Wi-Fi access points and other equipment from Aruba Networks Inc. in 281 buildings in 83 countries, creating one of the world's largest Wi-Fi networks. The network is designed to support more than 25,000 simultaneous Wi-Fi sessions for Microsoft employees and visitors. The equipment from closely held Aruba, Sunnyvale, Calif., will replace gear from computer-networking giant Cisco Systems Inc. that Microsoft has been using since 1999. A Microsoft spokesman said the vendor choice, made after an evaluation process that lasted nearly a year, was based on technical merit. A Cisco spokeswoman said its strategic partnership with Microsoft remains in place. Other start-ups pursuing an approach similar to Aruba's include Trapeze Networks Inc., of Pleasanton, Calif., and Airespace Inc., which Cisco acquired this year for $450 million. Mr. Mathias said the deal establishes Aruba as a big player in the corporate Wi-Fi market. He said Aruba's gear, which also is used by eBay Inc. and Yahoo Inc., has strong security features to prevent unauthorized users from tapping into corporate networks. "They've been a major innovator," he said. Microsoft has been using some of Aruba's security technology since last year, Mr. LeBeau said. Even before its purchase of Airespace, Cisco was by far the biggest player in corporate Wi-Fi networks, with 59% of the market in the first quarter of the year, according to market researcher Dell'Oro Group, Redwood City, Calif. investorshub.com A bit bothersome, but am not shocked Cisco didn't get this account on the first go around when the market is still reasonably new (when startups can create ship schedules specific to one account rather than for an entire industry product-line) and the profit in this particular account probably wasn't there (I can imagine Aruba gave up all chance of profits here), but the next upgrade that Microsoft does, I would expect Cisco to muscle their way back in once the market matures a bit more when Cisco can offer both a price advantage and a technology Microsoft may need.